Is Electrification Worth It in New Jersey?
Complete ROI analysis for home electrification based on New Jersey's energy costs, climate, and available incentives.
Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,515
Full electrification
Available Incentives
$11,650
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year
New Jersey Energy Costs
Electricity Rate
$0.168/kWh
Natural Gas Rate
$1.75/therm
Average Electric Bill
$162/month
Average Gas Bill
$95/month
Climate Zone
mixed
Heating Degree Days
5,000
Cooling Degree Days
950
Visual ROI Analysis
Payback Period Comparison
Lower is better • Shortest payback = fastest return on investment
Annual Savings Comparison
Higher is better • More annual savings = greater long-term benefit
Cumulative Net Savings Over Time
Point where line crosses $0 = payback achieved • Steeper line = faster savings growth
Return on Investment by Upgrade
🌡️
Heat Pump HVAC
Upfront Cost$12,000 - $22,000
Total Incentives-$3,000
Net Cost$9,000 - $19,000
Annual Savings$55/yr
Payback PeriodNot Recommended
Lifetime ROI11%
CO₂ Reduction2.9 tons/yr
☀️
Solar Panels
Upfront Cost$15,000 - $30,000
Total Incentives-$4,500
Net Cost$10,500 - $21,000
Annual Savings$1,179/yr
Payback Period14.0 years
Lifetime ROI153%
CO₂ Reduction3.3 tons/yr
💧
Heat Pump Water Heater
Upfront Cost$2,500 - $4,500
Total Incentives-$2,650
Net Cost$-150 - $1,850
Annual Savings$273/yr
Payback Period3.9 years
Lifetime ROI89%
CO₂ Reduction1.8 tons/yr
⚡
EV Charger + Electric Vehicle
Upfront Cost$800 - $2,500
Total Incentives-$1,500
Net Cost$-700 - $1,000
Annual Savings$1,008/yr
Payback Period0.2 years
Lifetime ROI1311%
CO₂ Reduction4.8 tons/yr
Full Electrification Package
Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$11,650
Net Cost After Incentives
$18,650 - $47,350
Annual Energy Savings
$2,515/year
Lifetime Savings (18 years)
$45,269
Simple Payback
14.8 years
💡
Best ROI for New Jersey
Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.2 years and an ROI of 1311%.
0.0 years slower than average compared to the national average.
Ready to electrify your New Jersey home?
Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.